Individuals and businesses are not the only ones who receives a tax extension from the IRS. Even nonprofits and exempt organizations can avail extension benefits by Filing the Form 8868 to the IRS. Unlike the process of filing a personal or business tax return, with the Form 8868 exempt organizations can use this Form to extend their time twice using automatic and not automatic extension.
The deadline to file an Exempt Organization return falls on May 15th every year for the organizations which has an accounting period over a calendar tax year. For organizations which is not filing on a calendar tax year basis, the due date is the 15th day of the 5th month after the end of their their tax year.
The First Extension is an automatic 3-month extension of time to file. Unless a Non-Profit Organization files a Form 990-T, the first part will only extend the deadline by 3 months. (Automatic 6-month extension will be given for form 990-T)
The Second Extension is an additional not-automatic 3-months extension. This additional extension can only be filed if the organization has already been granted with the automatic 3-months extension.
The easiest and safest way to file this Form is by filing through www.expressextension.com. The Internal Revenue Service [IRS] prefers the E-File method and has often referred it as "Safer one than paper filing." Some people believe that the IRS may soon requires all the documents and Forms to be e-filed.
These three Categories can file form 8868
Public charities is a kind of organization which has the broad support from public. These organizations mainly focuses on funds from the general public.
Private Foundation is formed by an individual or a group of individual. Nonexempt charitable trusts is considered as the private foundations which also have a wide support from the public.
Hospitals, Schools, Political organizations, Parent Teacher Associations, Credit Unions, Social Welfare Organizations are the other nonprofit organizations which operates independently and must report to the IRS.
E-filing is a paperless and its an online option provided by third-party vendors to e-file the IRS Form 8868. The IRS recommends e-filing due to the quick response time of the IRS system and the substantial decrease in user errors.
An organization must need to register for an account with the IRS-Authorized e-file service provider, like ExpressExtension inorder to e-file the Form 8868.
Once the organization finished creating its account its simple to complete the Form 8868 and it can be easily submitted to the IRS. The organization should receive a response mail in around 15 minutes regarding the status of their filing. Since the process is online, the filer may submit Forms at their leisure and without wasting precious time and money.
Form 8868 can be used to apply extension for the Form 8870, Form 6069, Form 5227, Form 4720, Form 1041 A, Form 990-T, Form 990 PF, Form 4720, Form 990 BL, Form 990-EZ, Form 990. The filer will select the appropriate Form with the return code for which they are filing for, along with the general informations about the organization.
Generally, a penalty of ½ of 1% of any tax not paid by the due date is charged for each month or part of a month that the tax remains unpaid. The penalty cannot exceed 25% of the amount due. The penalty will not be charged if you can show reasonable cause for not paying on time.
A penalty is charged if the return is filed after the due date (including extensions) unless you can show reasonable cause for not filing on time. The penalty is 5% of the tax not paid by the regular due date for each month or part of a month that the return is late, up to a maximum of 25% of the unpaid tax. For an income tax return filed more than 60 days late, the minimum penalty is $100 or the balance of the tax due on the return, whichever is smaller.
Expressextension.com provides easy to use, quick and secure navigation process to file IRS Tax Extension Forms 4868, 7004 & 8868. E-file 8868 or other IRS Tax Extension Forms and get up to six months extension of time to file your Federal income tax return.
With our ExpressTaxExempt - Form 8868 App, e-filing your Form 8868 is made simple.
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